Export Preparedness Index 2021 | UPSC


NITI Aayog, in partnership with the Institute of Competitiveness, released the Export Preparedness Index (EPI) 2021 today.

      WHY IN NEWS:

  • Most of the Coastal States are the best performers.
  • Gujarat ranked No. 1 for the second time in a row.



  • India has shown remarkable resistance to the obstacles created by the pandemic in global trade and India has achieved new heights in terms of export in the financial year 2021-22.
  • The report is also an attempt to capture the effects of the COVID-19 pandemic and recovery from it in terms of exports.

The report is a comprehensive analysis of India’s export achievements.

  • The index can be used by states and union territories (UTs) to benchmark their performance against their peers and analyse potential challenges to develop better policy mechanisms to foster export-led growth at the subnational level.


  • The idea behind the index is to create a benchmark to rank these states and UTs to help them individually promote a conducive export environment in the region.
  • The index is an essential tool for policymakers and exporters to identify the drivers and obstacles, and examine the same to strategize a viable export map for the state.


  • Indian export is an inalienable component of India’s economic growth as exports have been contributing roughly 20 per cent on average to the GDP of India for the past decade.
  • States with higher exports also experience a high Gross State Domestic Product (GSDP). US$ 259.25 billion is the estimated GSDP of Gujarat in Fiscal Year 2022.
  • The pandemic created challenges for countries to attract investment within their domestic territory to generate employment; and, have more direct control of supply chains in the backdrop of simultaneous cessation of demand and supply across the globe.

  • The government of India has set the merchandise export target of $400 billion for the year 2021-22.
  • The country-level analysis is essential to further develop a comprehensive level of understanding of export preparedness in India.
  • The overall strength and weakness regarding export preparedness can help formulate efficient strategies and policies to improve export growth in the long run.

Export Preparedness Index 2021 | UPSC



The 4 pillars and the rationale behind their selection is given below:

  1. Policy: A comprehensive trade policy provides a strategic direction for exports and imports.
  2. Business Ecosystem: An efficient business ecosystem can help attract investments and create an enabling infrastructure for businesses to grow.
  3. Export Ecosystem: This pillar aims to assess the business environment, which is specific to exports.
  4. Export Performance: This is the only output-based pillar and examines the reach of export footprints of states and union territories.

Export Preparedness Index



EPI 2021 brings out three major challenges to India’s export promotion.

  1. Intra- and inter-regional differences in export infrastructure.
  2. Weak trade support and growth orientation across states.
  3. Lack of R&D infrastructure to promote complex and unique exports.

      IASbhai WINDUP: 

  • India is one of the fastest growing economies of the world with exports playing an important role in the economic growth of the country.

A robust business environment attracts investment in any region. It contributes to a greater capacity of exporters in the trade expansion of a region.

  • It truly reflects the internal and external factors such as investor-friendly policies and a balance between levels of protection and incentives that encourage the private sector’s contribution in the region.
  • The Business Ecosystem pillar evaluates states performance across four components: Business Environment, Infrastructure, Transport Connectivity and Access to Finance.
     SOURCES:  PIB   | Export Preparedness Index 2021 | UPSC

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